2018 Financial Performance

• Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market 2018 Ontario: Elimination of rent control on new rental units first occupied on or before November 1, 2018 ⚫ British Columbia: Extension of the Property Transfer Tax on non-resident buyers. Investment of more than $1.6 billion through FY2021 toward the goal of building 114,000 affordable housing units in the next 10 years • Canada: OSFI imposes more stringent stress tests for uninsured mortgages, including a minimum qualifying rate at the greater of the five-year fixed posted rate or the contractual rate plus 200 bps, effective January 1, 2018 • 2017 Ontario: 16 measures aimed to slow rate of house price appreciation Key aspects include: 。 15% non-resident speculation tax Expanded rent control to all private rental units in Ontario o Vacant home tax o $125 million five-year program to encourage construction of new rental apartment buildings • • 2016 Canada: Qualifying stress rate for all new mortgage insurance must be the greater of the contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate Low-ratio mortgage insurance eligibility requirements updated for lenders wishing to use portfolio insurance: o Maximum amortization 25 years o $1 million maximum purchase price ○ Minimum credit score of 600 。 Property must be owner occupied Elimination of primary residence tax exemption for foreign buyers • Minimum down payment on insured mortgages on homes valued $0.5-$1 million increased from 5% to 10% • British Columbia: 15% land transfer tax on non-resident purchases in Metro Vancouver introduced Scotiabank® 49

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